10th August 2022

Legal & General reports continued good performance for first half

Highlights are:
-8% growth in Operating profit and EPS, 21% ROE and
SII coverage ratio of 212%
-Continued delivery of strong financial performance1
Operating profit of £1,160m, up 8%)
Earnings per share of 19.28p, up 8%
Profit after tax of £1,153m(H1 2021: £1,065m) and Return on equity of 21.3%(H1 2021: 22.0%)
-Solvency II coverage ratio of 212%(H1 2021: 182%)
-Interim dividend of 5.44p, up 5%
-Growing contribution to five-year (2020-2024) ambitions
-Cash generation of £1bn, up 22% year on year.
-Capital generation of £0.9bn, up 14% year on year
-Strong PRT new business volumes and LGIM net flows
Global PRT new business premiums of £4.4bn (H1 2021: £3.1bn), including largest ever US transaction
-LGIM record H1 external net flows of £65.6bn(H1 2021: £27.4bn), with AUM down to £1.3tn due to market movements
-Protection premiums of £1,605m(H1 2021: £1,500m) and Individual annuity premiums of £453m (H1 2021: £483m)
-A strong and resilient balance sheet
-100% of scheduled cashflows received from Direct Investments
-Strong and growing IFRS and Solvency II balance sheet
Long-term, growth-oriented, and highly synergistic business model
- Attractive global growth markets: retirement solutions ($57tn), asset management($149tn), climate change($20tn)
A longstanding commitment to Inclusive Capitalism and a leader in ESG: rated #1 Life & Health insurer by ShareAction.
Sir Nigel Wilson, Group chief executive, comments:
“We’ve made a good start to the year, with operating profit and EPS up 8%, cash and capital generation up double digits,
DPS up 5% and a return on equity of 21%. We have delivered for our institutional clients and retail customers, while
generating good volumes and margins in a buoyant PRT market and continuing to scale LGC at pace–both in the UK and
now also in the US– riginating assets for our own business and for third parties, whilst also delivering a positive outcome for the economies where we invest. Our balance sheet is strong and highly resilient, with a solvency ratio of 212% and with 100% of cash flows received from our Direct Investments. We are committed to providing financial security for our customers and colleagues in a tough economic climate and remain confident in our ability to grow profits sustainably and at attractive returns over the long-term.”

Legal&General Trends(305 articles)